The State of Franklin was set up in 1784 out of the western portion of the colonial state of North Carolina. Shortly after the War of Independence the original colonies were asked to pay for the war efforts and create a country with a sound financial policy. Since the taxing the population was difficult and cash was in short supply North Carolina ceded the western portion of the state to the federal coffers. Before Congress could accept the offer North Carolina withdrew the offer. The citizens of the region decided that federal rule in the meantime was probably a good idea since North Carolina as a state had given this remote region little support in its fight with the Indians or protection from criminal refugees. They saw other benefits as an independent state in terms of taxation, representation, and an understanding attitude toward local problems. Representatives of the North Carolina counties of Sullivan, Washington, Greene, and Davidson accepted the offer of cessation to federal territory. The state of Franklin existed for only four years and then merged with the new state of Tennessee. The State of Franklin, known also as the Free Republic of Franklin or the State of Frankland (the latter being the name submitted to the Continental Congress when it considered the territory's application for statehood) was an unrecognized autonomous United States territory created in 1784 from part of the territory west of the Appalachian Mountains that had been offered, by North Carolina, as a cession to the federal government (to help pay off debts related to the American Revolutionary War). Franklin's first capital was Jonesborough. Franklin was never admitted into the United States — falling two votes short for admission. The extra-legal state existed for only about four and a half years, ostensibly as a republic, before largely being abandoned.
After the summer of 1785, the government of Franklin (which was by then based in Greeneville, ruled as a "parallel government" running alongside (but not harmoniously with) a re-established North Carolina bureaucracy. The creation of Franklin is novel in that it resulted from both a cession (an offering from North Carolina to Congress) and a secession (seceding from North Carolina when its offer was not acted upon and the original cession was rescinded).
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